Dixons predicts it will meet profits target

Dixons has reassured investors that full-year profits are likely to be in line with scaled-down market expectations.

Dixons has reassured investors that full-year profits are likely to be in line with scaled-down market expectations.

Forecasts for the year to May 3rd were revised lower by London analysts in January after the electrical retailer said Christmas sales had disappointed.

But the company has told the London market it remains comfortable with the new range of expectations as its financial year draws to a close.

Profits before tax and one-off items are forecast to be around £297 million sterling after expectations prior to the profits warning came in at between £320 million and £335 million.

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The group's statement showed trading in December had been affected by weaker sales of games consoles, hi-fi and extended warranties.

Dixons - which also owns the Currys, PC World and The Link chains - said people had held off making large purchases in the uncertain economic conditions.

The group - which has 1,370 stores across Britain, the Republic of Ireland, the Nordic countries, France, Spain and Italy - posted half-year pre-tax profits of £94.8 million - up 8 per cent on a year earlier - in the 28 weeks to November 9th.